Financial Results for the First Quarter of Fiscal Year Ending October 31, 2009
March 12, 2009
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Makoto Yoshida, Chief Executive Officer
Contact : Shigekazu Kaneda, Board Director and Executive Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : March 13, 2009

(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended January 31, 2009 (November 1, 2008 - January 31, 2009)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen

Ordinary income％

Millions of yen

Net income％

Millions of yen％

Millions of yen

Three months ended
Jan. 31, 2009

4,657

-

(651)

-

(642)

-

(662)

-

Three months ended
Jan. 31, 2008

5,167

(3.8)

(213)

-

(234)

-

(226)

-

Net income per
share

Diluted net income
per share
Yen

Yen

Three months ended
Jan. 31, 2009(35.31)-Three months ended
Jan. 31, 2008

(11.99)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Jan. 31, 200916,081

6,857

42.6

365.71

As of Oct. 31, 2008

18,046

7,586

42.0

403.55

Reference: Shareholders' equity (Millions of yen):Jan. 31, 2009: 6,857

Oct. 31, 2008: 7,586

2. Dividends(Record date)1Q-endYen

Year ended Oct. 31, 2008
Year ending Oct. 31, 2009
Year ending Oct. 31, 2009
(forecast)
Note: Revision of dividend forecast during the period: None

Dividend per share
2Q-end3Q-end
Yen
Yen
1.00

Year-end-

0.00

Annual
Yen

Yen

0.00

1.00

-

-

1.00

1.00

3. Consolidated Forecast for the Fiscal Year Ending October 31, 2009 (November 1, 2008 - October 31, 2009)(Percentage figures represent changes from the same period of the previous year.)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareFirst half
Full year

Millions of yen%

Millions of yen%

10,50021,500

(5.5)
1.1

(850)
(900)

-

Millions of yen
(800)
(800)

Note: Revision of projected consolidated performance during the period: Yes

-1-

%
-

Millions of yen
(850)
(850)

%

Yen

-

(45.27)(45.27)

4. Others(1) Changes in consolidated subsidiaries during the period (Changes in scope of consolidation): None
(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly consolidated financial
statements: Yes
Note: Please refer to “Qualitative Information and Financial Statements, Other Information” on page 3 for further information.
(3) Changes in accounting principles, procedures, presentation methods for preparation of quarterly consolidated financial statements
1) Changes caused by revision of accounting standards: Yes
2) Other changes: Yes
Note: Please refer to “Qualitative Information and Financial Statements, Other Information” on page 3 for further information.
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Jan. 31, 2009:
19,572,000 shares
Oct. 31, 2008:
19,572,000 shares
2) Number of treasury stock at the end of the period
Jan. 31, 2009:
821,460 shares
Oct. 31, 2008:
773,364 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Three months ended Jan. 31, 2009: 18,776,631 shares
Three months ended Jan. 31, 2008: 18,900,927 shares*Appropriate use of business forecasts, other special items
1. These forward-looking statements involve uncertainties. Actual results may differ from those anticipated due to various factors that
may arise in the future.
2. Effective from the current fiscal year, the Company has adopted “Accounting Standards for Quarterly Financial Statements” (ASBJ
Statement No. 12) and “Guidance on Accounting Standards for Quarterly Financial Statements” (ASBJ Guidance No. 14). In
addition, the quarterly consolidated financial statements are prepared in accordance with “Regulations for Quarterly Consolidated
Financial Statements.”-2-

(Qualitative Information and Financial Statements)
1. Other Information(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation)
Not applicable(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
consolidated financial statements
1) Simplified Accounting Method(Valuation of inventory assets)
The value of inventories at the end of the period under review is calculated using a rational method, based on physical inventories
at the end of the previous fiscal year, rather than physical inventories at the end of the period under review.
(Calculation of depreciation expense for fixed assets)
Amount of acquisition, disposal and depreciation of the fixed assets which to be applied to the quarter is calculated by distributing
the amount quoted or budgeted according to the length of the period.
2) Special accounting treatment for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated
financial statements
1) Application of “Accounting Standard for Quarterly Financial Reporting”
Effective from the current fiscal year, the Company has adopted “Accounting Standard for Quarterly Financial Statements” (ASBJ
Statement No.12, issued March 14, 2007) and “Guidance on Accounting Standards for Quarterly Financial Statements” (ASBJ
Guidance No. 14, issued March 14, 2007) In addition, the quarterly consolidated financial statements are prepared in accordancewith the “Regulations for Quarterly Consolidated Financial Statements.” Effective from the first quarter of the current fiscal year, thecompany has adopted the amended Regulations for Quarterly Consolidated Financial Statements pursuant to the proviso of Article
7, Paragraph 1, Item 5 of the Supplementary Provision of the “Cabinet Office Ordinance Partially Revising Regulation for
Terminology, Forms and Preparation Methods of Financial Statements” (Cabinet Office Ordinance No.50, issued August 7, 2008)
2) Application of Accounting Standard for Measurement of Inventories
Previously, Inventories held by the Company and the domestic consolidated subsidiaries for normal sales purpose were valued atcost, determined by the periodic average method for finished goods and goods in process, by the moving average method for raw
materials and supplies. Effective from the first quarter of the current fiscal year, however, the Company has applied “AccountingStandard for Measurement of Inventories” (ASBJ Statement No.9, issued July 5, 2006), such inventories are generally valued atcost, determined by the periodic average method (the carrying value on the Balance sheets is written down to reflect the effect oflower profit margins) for finished goods and goods in process, by the moving average method (the carrying value on the Balance
sheets is written down to reflect the effect of lower profit margins) for raw materials and supplies.
These corrections do not have a material effect on earnings.
3) Application of “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements”
Effective from the first quarter of the current fiscal year, the Company has applied “Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (PITF No, 18, issued May 17, 2006).
The application of this standard does not have a material effect on earnings.
4) Application of “Accounting Standard for Lease Transactions”
Previously, finance lease that do not deem to transfer ownership of the leased property to the lessee were capitalized on thebalance sheets. From the first quarter of the current fiscal year, however, companies are able to apply “Accounting Standard forLease Transactions” (ASBJ Statement No. 13, issued March 30, 2007; revised from standard originally issued by the Corporate
Accounting Council on June 17, 1993), and “Guidance on Accounting Standard for Lease Transactions,” (ASBJ Guidance No.16,
issued March 30, 2007; revised from standard originally issued by the Japanese Institute of Certified Public Accountants on
January 18, 1994). From the current consolidated first quarter, the Company has applied this standard, treating such leases asregular transaction. In addition, lease assets that do not deem to transfer ownership of the leased property to the lessee aredepreciated using the straight-line method over the period of the lease, with zero residual value.
The application of these standards does not have a material effect on earnings.
For the finance lease transaction in which ownership is not transferred whose lease commencement date is before the first year of
application, accounting according to the method concerning ordinary lease transactions has been continually adopted.
(Additional information)
Change in useful lives of Property, Plant and Equipment:
On April 30, 2008, the Japanese Income Tax Law was revised to implement certain changes to useful lives of depreciable Property,
Plant and Equipment. As a result, commencing in the first quarter of the current fiscal year, the Company and the domestic
consolidated subsidiaries changed the useful lives of machinery and equipment in calculating the depreciation expenses ofmachinery and equipment in accordance with the revised Japanese Income Tax Law. The effect of this change was to increase
operating loss, ordinary loss and loss before income taxes by 9 million yen each in the first quarter of the current fiscal year. The
effect of these changes on segment operation is shown in the Segment Information section.

-3-

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Semi-finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Allowance for loss on valuation of investments ofsubsidiaries and affiliates
Total investments and other assets
Total noncurrent assets
Total assets

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets-4-First quarter of FY10/2009(As of Jan.31,2009)(Millions of yen)
FY10/2008 Summary(As of Oct.31,2008)

2,081
4,054
2,296
225
963
268
485
2
185
(147)
10,415

3,991
4,049
2,229
224
971
204
416
5
335
(102)
12,325

6,571(4,041)
2,529
1,316
7,636
(6,695)
941
4,787
90

6,571
(3,999)
2,572
1,316
7,499
(6,617)
882
4,772
90

738
551
(394)

769
268
(79)

(108)

(99)

788
5,665
16,081858
5,721
18,046

4,054
2,113
16
198
94
1,393
7,871

4,315
2,534
55
431
94
1,789
9,220

1,077
75
200
1,353
9,224

1,035
76
127
1,239
10,460

3,200
3,620
633
(331)
7,121

3,200
3,620
1,296
(319)
7,796

(146)
(117)
(264)
6,857
16,081

(116)
(94)
(210)
7,586
18,046

(2) Consolidated quarterly statements of income(For the Three-month Period)(Millions of yen)First quarter of FY10/2009 First quarter of FY10/2008(Nov.1,2008-Jan.31,2009)(Nov.1,2007-Jan.31,2008)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Priority use fee of products
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Foreign exchange loss
Other
Total non-operating expenses
Ordinary loss
Extraordinary loss
Provision of allowance for loss on valuation of
investments of subsidiaries and affiliates
Total extraordinary losses
Loss before income taxes and minority interests
Total income taxes
Net loss

-5-

4,657
3,564
1,093
1,745
(651)

5,167
3,881
1,286
1,499
(213)

1
50
32
84

0
―
24
25

4
34
31
5
75
(642)

4
―
38
3
46
(234)

8

―

8
(651)
11
(662)

―
(234)
(8)
(226)

(3) Consolidated Statements of Cash Flows(Millions of yen)First quarter of FY10/2009 First quarter of FY10/2008(Nov.1,2008-Jan.31,2009)(Nov.1,2007-Jan.31,2008)
Net cash provided by (used in) operating activities
Loss before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in Provision of allowance for loss on
valuation of investments of subsidiaries and affiliates
Increase (decrease) in Provision for loss on buisiness of
subsidiaries and affiliates
Interest and dividends income
Interest expenses
Loss (gain) on valuation of derivatives
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment securities
Acquisition of investments in affiliates
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

-6-

(651)
123
359
(232)
42

(234)
106
(6)
(214)
33

8

―

―

(62)

(3)
4
35
(5)

(3)
4
(16)
(409)

(308)

―

(192)
(261)
(13)
(1,093)3(4)(42)(1,137)

(194)
121
(108)
(985)
3
(4)
(49)
(1,035)

(124)
124
(315)
―
―
0
(316)

―
―
(114)
(50)
(30)
24
(170)

(421)
(12)
―
(433)
(23)
(1,909)
3,714
1,804

(505)
(13)
(37)
(556)
39
(1,723)
3,996
2,273

(4) Going Concern Assumption
No reportable information.

(5) Segment Information(Industry Segment Information)
First Quarter of FY10/2009 (Nov. 1, 2008 - Jan. 31, 2009)
Housing &Environmental
Equipment(Millions of yen, rounded down)
ElectroCeramics

Tabletop

Segment
total

Other

Elimination or Consolidated
corporate
Total

Net sales(1)Sales to Outside
2,621
1,258
768
8
4,657
Customers(2)Intersegment sales
or Transfers
Total
2,621
1,258
768
8
4,657
Operating income (loss)
(30)
(385)
(65)
(11)
(492)
Notes: 1. Major products in each industry segment:
Industry segments are classified based on the similarities of products, markets and so on.
Industry Segment
Major Products
Housing &Equipment
Tabletop

Environmental

-

4,657

-

-

(159)

4,657
(651)

FRP bath-tubs, Bathroom units, Septic tanks, Water treatment facilities,
Tiles, Wind turbine system
Fine bone china, Fine vitrified china, Fine porcelain, Oven ware

Electro-Ceramics

Alumina substrates, Hybrid IC, LTCC substrates,
Dielectric ceramics
2. As described in “Changes in accounting principles, procedures and presentation methods for preparation of quarterly
consolidated financial statements, 2. Application of Accounting Standard for Measurement of inventories,” on page 3,
previously, Inventories held by the Company and the domestic consolidated subsidiaries for normal sales purpose ware
valued at cost, determined by the periodic average method for finished goods and goods in process, by the moving
average method for raw materials and supplies. Effective from the first quarter of the current fiscal year, however, theCompany has applied “Accounting Standard for Measurement of Inventories” (ASBJ Statement No.9, issued July 5,2006), such inventories are generally valued at cost, determined by the periodic average method (the carrying value on
the Balance sheets is written down to reflect the effect of lower profit margins) for finished goods and goods in process,by the moving average method (the carrying value on the Balance sheets is written down to reflect the effect of lower
profit margins) for raw materials and supplies. These corrections do not have a material effect on earnings
3. As noted in “Qualitative Information and Financial Statements, Other Information” on page 3, Change in useful of
Property, Plant and Equipment:, commencing in the first quarter of the current fiscal year, the Company and theconsolidated domestic subsidiaries changed the useful lives of machinery and equipment in calculating their depreciation
expenses in accordance with the revised Japanese Income Tax Law. As a result of this application, as for Housing &Environmental Equipment segment, Tabletop segment, Electro-Ceramics segment and Other segment, operating loss
increased by 0 million yen, 3 million yen, 4 million yen and 0 million yen.
First Quarter of FY10/2008 (Nov. 1, 2007 - Jan. 31, 2008)
Housing &Environmental
Equipment
Net sales(1)Sales to Outside
Customers(2)Intersegment sales
or Transfers
Total
Operating income (loss)(Millions of yen, rounded down)

Tabletop

ElectroCeramics

Segment
total

2,606

1,607

953

0

5,167

-

5,167

-

-

-

-

-

-

-

2,606
(11)

1,607
26

953
(56)

0
(1)

5,167
(42)

(171)

5,167
(213)

Other

Elimination or Consolidated
corporate
Total(Information by Geographic Segment)
Geographical segment information is not presented since domestic sales exceeded 90% of total segment sales.

-7-

(Overseas Sales)First Quarter of FY10/2009 (Nov. 1, 2008 - Jan. 31, 2009)(Millions of yen, rounded down)

North America

Asia

Other

Consolidated total

Overseas sales
158
188
22
369
Consolidated net sales
4,657
Percentage of overseas sales
3.4%
4.1%
0.4%
7.9%
against consolidated net sales
Notes :
1. The countries or areas are classified based on the geographical proximity.
2. Major countries and areas which belong to each classification:
North America : U.S.A., Canada
Asia: Korea, China, Other Asian Countries
3. Overseas sales include the export sales of the company and domestic subsidiaries and the domestic sales of thesubsidiaries abroad.
First Quarter of FY10/2008 (Nov. 1, 2007 - Jan. 31, 2008)(Millions of yen, rounded down)

North America
Overseas sales
Consolidated net sales
Percentage of overseas sales
against consolidated net sales

Asia

Other

Consolidated total

382

282

33

698
5,167

7.4%

5.5%

0.6%

13.5%

(6) Significant changes in Shareholder’s Equity
Not applicable.

(Supplementary Information)
Sales by Segment

Industry Segment(Millions of yen, rounded down)First Quarter of FY10/2008(Nov. 1, 2007 - Jan. 31, 2008)

First Quarter of FY10/2009(Nov. 1, 2008 - Jan. 31, 2009)

FY10/2008(Nov. 1, 2007 - Oct. 31, 2008)

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Net Sales

Housing & Environmental
Equipment

2,606

50.4%

2, 621

56.3%

11,174

52.5%

Tabletop

1,607

31.1

1,258

27.0

6,436

30.3

Electro- Ceramics

953

18.5

768

16.5

3,633

17.1

Other

0

0.0

8

0.2

24

0.1

Total

5,167

100.0

4,657

100.0

21,267100.0

Percent of
Net Sales

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. The following table indicates the Company’s Overseas sales share by industry segment and percentage figures represent
Overseas sales ratio.
(Millions of yen, rounded down)

Industry Segment

First Quarter of FY10/2008(Nov. 1, 2007 - Jan. 31, 2008)

First Quarter of FY10/2009(Nov. 1, 2008 - Jan. 31, 2009)

Overseas
Sales

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Overseas Sales
Ratio

FY10/2008(Nov. 1, 2007 - Oct. 31, 2008)
Overseas Sales
Ratio

Tabletop

544

33.9%

237

18.8%

2,112

32.8%

Electro- Ceramics

153

16.1

132

17.2

461

12.7

Total

698

13.5

369

7.9

2,574

12.1

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